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Nilörngruppen
Quarterly Report • Feb 9, 2024
3183_10-k_2024-02-09_b555568c-6346-44ff-8b7e-398c75f68b75.pdf
Quarterly Report
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Interim Report for Nilörngruppen AB (publ) Q4, January - December 2023
Period October – December
- Order intake increased by 12 percent to MSEK 256 (228)
- Revenue increased by 3 percent to MSEK 204 (199)
- Revenue adjusted for currency effects amounted to MSEK 205 (199), i.e., an underlying organic increase of 3 percent
- Operating profit amounted to MSEK 9.2 (14.3)
- Currency loss mainly attributable to Turkey amounted to MSEK -2.8 (+2.8)
- Net profit for the period amounted to MSEK 5.7 (9.1)
- Earnings per share amounted to SEK 0.50 (0.80)
Period January – December
- Order intake decreased by 16 percent to MSEK 828 (983)
- Revenue decreased by 8 percent to MSEK 870 (943)
- Revenue adjusted for currency effects amounted to MSEK 844 (943), i.e., an underlying organic decrease of 10 percent
- Operating profit amounted to MSEK 63.0 (136.4)
- Net profit for the period amounted to MSEK 39.4 (101.0)
- Earnings per share amounted to SEK 3.45 (8.86)
- Net cash excluding IFRS 16 amounted to MSEK 17 (33)
Significant events after the quarter
- The board has decided to propose to the annual general meeting a dividend of SEK 1.00 (5.00) per share, equivalent to MSEK 11.4 (57.0)
- Nilörngruppen has initiated a strategic collaboration with Worldfavor, strengthening the Nilörn:CON-NECT solution and offer to our customers on their journey towards the Digital Product Passport
CEO Statement
Dear shareholder,
It is pleasing to note that the underlying organic revenue has rebounded, exceeding last year's figures albeit by a modest three percent. Our clients in the luxury segment continue to perform well, and there are also signs of recovery emerging among clients in the sport/outdoor sector. However, the situation within the outdoor segment remains mixed, influenced by customers' levels of finished goods inventory, which in turn impacts their demand for labels. Nevertheless, we anticipate normalization within this segment over the year. Nilörn primarily serves customers in Sport/Outdoor in Scandinavia, the UK, and Germany, while Southern Europe focuses more on retail and luxury brands.
The trend continues for our distribution units where volumes are shifting from China/Hong Kong in favour of Europe and other countries in Asia, positively affecting our offices in Bangladesh, Pakistan, and Portugal. The weaker performance in Turkey can be attributed to high inflation, affecting customers' choice of production countries.
The operating profit for the period, amounting to 9.2 (14.3) million SEK, has been impacted by a currency loss of 2.8 million SEK, compared to a currency gain of the same amount in the previous year.
The cash flow from operating activities has been strong, largely due to reduced inventory levels. Our ambition to reduce inventory by 50 million SEK during the year is now almost fulfilled.
For continued expansion in countries with strong growth, such as Bangladesh, Vietnam, and Portugal, we will invest in increase production capacity. We will also intensify our focus on Nilörn:CONNECT, which will strengthen our digital presence and enhance the customer experience. The goal is to implement these offensive investments with a continued strong balance sheet, which the Board of Directors has also taken into account in CON-NECTion with the dividend proposal that is lower than last year's level.
Investments in digital products and guiding customers on sustainability and compliance continue. There are challenges, but also significant opportunities where we can assist our customers with the changes resulting from increased EU legislation linked to the Green Deal. Nilörn has developed a concept, Nilörn:CONNECT, offering customers various solutions to support them on the path towards the Digital Product Passport. Yesterday, Nilörn signed a strategic cooperation agreement with Worldfavor, further enhancing the Nilörn:CONNECT solution and positioning us even stronger in sustainability.
Nilörn is well-equipped to handle both market challenges and opportunities, and we are now witnessing increased activity. It will be exciting to follow the developments throughout the year.
Krister Magnusson
Period October - December
Order Bookings
Order intake increased by 12 percent to MSEK 256 (228). This is a result of increased activity from our customers, particularly within the luxury and outdoor segments.
Net Revenue
Sales in SEK increased by 3 percent to MSEK 204 (199). Sales adjusted for currency effects amounted to MSEK 205, representing an underlying organic increase of 3 percent.
Gross Profit
The gross margin amounted to 44.9 (44.0) percent. Our Sourcing organization has performed well, allowing us to increase the margin despite market price pressure. Variations in gross profit between quarters are primarily attributable to individual orders and the distribution of product groups, where, for example, packaging has a lower gross profit margin.
Other Income, Costs, and Depreciation
Other operating income amounted to MSEK 7.4 (14.3), with MSEK 2.9 attributable to the adjusted purchase price for Bally Labels AG. The remaining portion is mainly attributable to currency effects. Other operating expenses of MSEK 4.7 are primarily related to currency.
External costs amounted to MSEK 21.5 (18.3), and personnel costs amounted to MSEK 55.7 (52.7). Both items have been affected by currency exchange effects, the acquisition of Bally Labels AG, and one-time items related to personnel of approximately MSEK 2.0.
Depreciation increased to MSEK 7.6 (6.9).
Operating Profit
The operating result amounted to MSEK 9.2 (14.3), resulting in an operating margin of 4.5 (7.2) percent. The operating result has been affected by a currency loss primarily attributable to Turkey amounting to MSEK -2.8 million, compared to a positive impact with the same amount in the same period last year. The result has also been burdened with start-up costs in Vietnam amounting to approximately MSEK 1.0.
Net Finance Items, Taxes, and Profit for the Period
Net financial items amounted to MSEK -2.0 (-2.0). Net financial items have been influenced by currency effects, where the depreciation of TRY has had the most impact.
Tax amounted to MSEK -1.5 (-3.2), resulting in an average tax rate of 20.6 percent. Net profit for the period amounted to MSEK 5.7 (9.1), with earnings per share of 0.5 (0.80) SEK.
Cash Flow, Capital Expenditures, Financing, and Liquidity
Cash flow from operating activities amounted to MSEK 33.2 (0.5). Cash flow from investing activities amounted to MSEK -4.1 (4.1).
Period January - December
Order Bookings
Order intake decreased by 16 percent to MSEK 828 (983).
Net Revenue and Operating Profit
Net sales in SEK decreased by 8 percent to MSEK 870 (943). Net sales adjusted for currency effects amounted to MSEK 844 (943), representing an underlying decrease of 10 percent. We have faced challenging comparisons during the first three quarters of 2023 as the performance in 2022 was extremely strong, but the growth slowed down during the fourth quarter of 2022. It is primarily customers in the outdoor segment that have experienced a more challenging development during the year, where many have had excessive finished goods inventory. The large inventories are a result of a return from the high demand during the pandemic. The gross margin amounted to 43.6 (44.2) percent. The gross margin is influenced by the product and customer mix throughout the year.
Other operating income amounted to MSEK 25.4 (32.4). External costs increased to MSEK 80.4 (71.2). Personnel costs increased to MSEK 214.9 (194.3). The cost side is also affected by currency as most operations take place outside of Sweden and in currencies other than SEK. However, we are relatively well-balanced, matching revenues with costs in the respective currency.
Depreciation increased to MSEK 31.2 (29.9).
The operating result amounted to MSEK 63.0 (136.4), yielding an operating margin of 7.2 (14.5) percent.
Tax amounted to MSEK -13.2 (-31.4). Net profit after tax amounted to MSEK 39.4 (101.0). The group's tax is a function of the tax rate in the various countries Nilörn operates in and how profitability is distributed among them.
Segments
As indicated in the segment reporting in note 2, there has been a decline in Sweden and Asia, while sales in Europe have increased. However, the operating result has decreased in all markets as the larger established markets have a weaker performance, albeit with a lower decline in Europe due to increased volumes.
Equity
The group's equity amounts to MSEK 294.8 (333.3). The change during the period is attributable to the period's result of MSEK 39.4, distributed dividend of MSEK 57.7, revaluation of pension plans of MSEK 0.5, additional acquisition of Bally Labels AG of MSEK 1.9, and the period's translation differences of MSEK - 18.8. The translation difference is a net effect when translating equity in the foreign subsidiaries into SEK.
Cash Flow, Investments, Financing, and Liquidity
Cash flow from operating activities amounted to MSEK 89.1 (44.6). Cash flow from investing activities amounted to MSEK - 17.7 (-8.4). Net debt (cash) at the end of the period amounted
to MSEK 7 (17), of which the leasing standard, IFRS 16, increased interest-bearing liabilities by MSEK 24 (22). Comparable figures, excluding rebooking according to IFRS 16, are a net cash position of MSEK 17 (39).
Personnel
The average number of employees in the group was 593 (587), of which 250 (247) were women (in relation to year-end). Out of the total number of employees, 335 people or 56 percent are engaged in production and warehousing.
Acquisition of Bally Labels AG
During the quarter, Nilörngruppen acquired an additional 10% of Bally Labels AG, bringing the total ownership to 90%.
The acquisition of Bally Labels AG has affected revenue by MSEK 1.7 for the quarter and MSEK 8.1 cumulatively. The operating result has been affected by MSEK -1.5 for the quarter and MSEK 0.5 cumulatively. Goodwill attributable to the acquisition amounts to MSEK 11.7.
Transactions with Related Parties
No transactions between Nilörngruppen and related parties that have materially affected the group's results and financial position have taken place during the period. The parent company's transactions with subsidiaries involve design, product development, IT, and other services.
Significant Events After the End of the Period
The board has decided to propose to the annual general meeting a dividend of 1.00 (5.00) kronor per share, equivalent to MSEK 11.4 (57.0). Upcoming offensive investments in increased production capacity in Bangladesh, Portugal and Vietnam, as well as intensified investment in Nilorn:CONNECT have been taken into account in CONNECTion with the Board's proposal.
Parent Company
The parent company's operations mainly involve managing group-wide functions such as branding and design, product development, finance, administration, information, and IT. The average number of employees amounted to 28 (26) persons.
Net sales for the year amounted to 35.6 (32.8) MSEK. Operating profit amounted to -4.5 (-6.2) MSEK and net profit amounted to 33.2 (58.5) MSEK, where the majority of the profit is attributable to dividends from subsidiaries. Impairment of shares in subsidiaries amounted to 22.2 MSEK.
Risks and Uncertainties
With its international operations, Nilörngruppen is continually exposed to various financial risks. The significant risks and uncertainties Nilörngruppen is exposed to include currency risks, political risks in individual countries, credit risks, and IT security, as outlined in Nilörngruppen's 2022 annual report, note 2.
Audit
This report has not been subject to review by the company's auditor.
Calendar
- April 17, 2024: Interim report Q1
- April 23, 2024: Publication of annual report
- May 14, 2024: Annual general meeting
- July 16, 2024: Interim report Q2
- October 25, 2024: Interim report Q3
- February 12, 2025: Year-end report
This information is information that Nilörngruppen AB is obligated to disclose under the EU Market Abuse Regulation. The information was submitted for publication on February 9, 2024, at 08:00 a.m. through the contact person below.
BORÅS 9 February 2024
NILÖRNGRUPPEN AB (PUBL)
Krister Magnusson CEO
FOR FURTHER INFORMATION CONTACT
Krister Magnusson, CEO Mobile: 0704 85 21 14 E-mail: [email protected]
Nilörngruppen AB Box 499 503 13 Borås www.nilorn.com
Summary Financial Reports – the Group
Consolidated Income Statement
| 3 months | 12 months | ||||
|---|---|---|---|---|---|
| October - December | January - December | ||||
| Amounts in SEK thousand | 2023 | 2022 | 2023 | 2022 | |
| Net revenue | 203,654 | 199,311 | 869,769 | 942,811 | |
| Raw materials, supplies and goods for resale | -112,308 | -111,678 | -490,062 | -526,293 | |
| Gross profit | 91,346 | 87,633 | 379,707 | 416,518 | |
| Other operating revenue | 7,388 | 14,314 | 25,392 | 32,447 | |
| Other external costs | -21,522 | -18,265 | -80,393 | -71,173 | |
| Personnel costs | -55,677 | -52,746 | -214,944 | -194,303 | |
| Depreciation, amortisation and impairment charges | -7,618 | -6,876 | -31,195 | -29,921 | |
| Other operating costs | -4,720 | -9,760 | -15,570 | -17,154 | |
| Operating profit | 9,197 | 14,300 | 62,997 | 136,414 | |
| Net finance items | -1,990 | -2,018 | -10,433 | -3,998 | |
| Profit before taxes | 7,207 | 12,283 | 52,564 | 132,417 | |
| Taxes | -1,482 | -3,178 | -13,176 | -31,417 | |
| Net profit for the period | 5,725 | 9,105 | 39,388 | 101,000 | |
| Average number of shares outstanding (thousands) | 11,402 | 11,402 | 11,402 | 11,402 | |
| Average number of shares outstanding after dilution (thousands) | 11,402 | 11,402 | 11,402 | 11,402 | |
| Earnings per share, SEK | 0.50 | 0.80 | 3.45 | 8.86 | |
| Earnings per share, SEK after dilution | 0.50 | 0.80 | 3.45 | 8.86 | |
| Consolidated Statement of Comprehensive Result | |||||
| Amounts in SEK thousand | October - December | January - December | |||
| 2023 | 2022 | 2023 | 2022 | ||
| Net profit for the period | 5,725 | 9,105 | 39,388 | 101,000 | |
| Other comprehensive result that may be reposted to net profit for the period | |||||
| Translation differences | -14,008 | -7,402 | -18,846 | 12,743 | |
| Items that cannot be reposted to net profit for the period | |||||
| Revaluation of defined benefit pension scheme | -536 | -1,772 | -536 | -1,772 | |
| Total profit for the period | -8,819 | -69 | 20,006 | 111,971 | |
| Total profit for the period attributable to: The Parent Company's equity holders |
-8,540 | -69 | 19,963 | 111,971 | |
| Minority Interest | -279 | 0 | 43 | 0 |
Distribution by product group in %
Development by product group during 2023
Quarterly Income Statements
| Amount in MSEK) | 2023 | 2022 | 2021 | 2020 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Net revenue | 221.3 | 230.2 | 214.7 | 203.7 | 242.3 | 269.1 | 232.0 | 199.3 | 175.2 | 175.2 | 203.4 | 234.5 | 155.5 | 142.3 | 147.0 | 173.4 |
| Raw materials, supplies and goods for resale |
-126.1 | -134.4 | -117.3 | -112.3 | -136.2 | -150.8 | -127.6 | -111.7 | -93.9 | -91.8 | -110.5 | -128.0 | -82.8 | -88.2 | -78.2 | -97.0 |
| Gross profit | 95.2 | 95.8 | 97.4 | 91.3 | 106.2 | 118.3 | 104.4 | 87.6 | 81.3 | 83.4 | 92.9 | 106.5 | 72.7 | 54.1 | 68.8 | 76.4 |
| Gross margin | 43.0% | 41.6% | 45.4% | 44.9% | 43.8% | 44.0% | 45.0% | 44.0% | 46.4% | 47.6% | 45.7% | 45.4% | 46.8% | 38.0% | 46.8% | 44.1% |
| Other income | 4.3 | 8.2 | 5.5 | 7.4 | 2.7 | 7.2 | 8.2 | 14.3 | 3.5 | 1.7 | 1.8 | 4.8 | 1.5 | 6.9 | 5.3 | 5.4 |
| Operating costs | -75.2 | -80.1 | -73.6 | -81.9 | -61.8 | -72.9 | -67.2 | -80.8 | -51.7 | -55.8 | -58.9 | -64.2 | -58.5 | -54.2 | -47.0 | -54.8 |
| Depreciation, amortisation and impairment charges |
-7.3 | -7.8 | -8.5 | -7.6 | -6.9 | -7.7 | -8.4 | -6.9 | -6.2 | -6.3 | -6.5 | -7.0 | -6.7 | -6.7 | -6.6 | -5.8 |
| Operating profit | 16.9 | 16.1 | 20.8 | 9.2 | 40.2 | 44.9 | 37.0 | 14.2 | 26.9 | 23.0 | 29.3 | 40.1 | 9.0 | 0.1 | 20.5 | 21.2 |
| Operating margin | 7.6% | 7.0% | 9.7% | 4.5% | 16.6% | 16.7% | 16.0% | 7.1% | 15.4% | 13.1% | 14.4% | 17.1% | 5.8% | 0.1% | 13.9% | 12.2% |
| Operating profit per share |
1.5 | 1.4 | 1.8 | 0.8 | 3.5 | 3.9 | 3.2 | 1.2 | 2.4 | 2.0 | 2.6 | 3.5 | 0.8 | 0.0 | 1.8 | 1.9 |
Quarterly Development
Operating Profit
Key Financial Indicators for the Period 1 January - 31 December
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|
| Revenue grow th, % | -7.7 | 19.6 | 27.5 | -13.6 | 0.5 | 7.5 | 11.5 |
| Operating margin, % | 7.2 | 14.5 | 15.2 | 8.2 | 9.3 | 12.0 | 12.1 |
| Profit margin, % | 6.0 | 14.0 | 14.7 | 7.6 | 8.8 | 11.8 | 12.1 |
| Average equity | 314.0 | 305.8 | 244.0 | 198.3 | 183.7 | 167.3 | 145.9 |
| Return on equity, % | 12.5 | 33.0 | 35.8 | 16.9 | 25.7 | 42.3 | 44.6 |
| Equity ratio, % | 51.0 | 55.8 | 50.0 | 51.3 | 45.3 | 53.0 | 49.2 |
| Interest-bearing net cash (liabilities –), MSEK* | -6.8 | 17.4 | 40.7 | -13.2 | -89.6 | -2.5 | 9.2 |
| Earnings per share, SEK | 3.45 | 8.86 | 7.67 | 2.94 | 4.14 | 6.20 | 5.70 |
| Equity per share, SEK | 25.86 | 29.22 | 24.40 | 18.40 | 16.37 | 15.85 | 13.50 |
| Dividend per share, SEK** | 1.00 | 5.00 | 5.00 | 2.00 | 0.00 | 4.00 | 4.00 |
| Average number of shares outstanding | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 |
| Number of shares outstanding at end of period | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 | 11,401,988 |
| Average number of employees | 593 | 587 | 540 | 520 | 502 | 482 | 446 |
* Interest-bearing net cash (liabilities –), has been effected by 24 MSEK by the introduction of IFRS 16
** Proposed dividend for 2023
Consolidated Balance Sheet
| Amounts in SEK thousand | 2023-12 | 2022-12 |
|---|---|---|
| Assets | ||
| Intangible non-current assets | 47,989 | 38,619 |
| Other non-current assets | 120,495 | 122,914 |
| Inventories | 165,813 | 212,130 |
| Trade receiveables | 106,363 | 99,009 |
| Other current assets | 32,470 | 28,222 |
| Cash and cash equivalents | 104,719 | 113,085 |
| Total assets | 577,849 | 613,979 |
| Equity and liabilities | ||
| Equity | 294,822 | 333,219 |
| Long-term interest-bearing liabilites | 31,014 | 30,748 |
| Long-term non-interest-bearing liabilities | 6,379 | 7,018 |
| Current interest-bearing liabilities | 80,478 | 64,872 |
| Current non-interest-bearing liabilities | 165,156 | 178,122 |
| Total equity and liabilities | 577,849 | 613,979 |
Changes in Consolidated Equity
| 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Other | Retained earnings |
||||||
| contributed | including net profit for the |
Minority | |||||
| Amounts in SEK thousand | Share capital | capital | Reserves | period | Total | Interest | Total equity |
| OPENING EQUITY 2023-01-01 | 2,850 | 43,231 | 6,311 | 280,827 | 333,219 | 1,262 | 334,481 |
| Net profit for the period | 39,345 | 39,345 | 43 | 39,388 | |||
| Other total profit | |||||||
| Translation differences during the period | -18,862 | -18,862 | 16 | -18,846 | |||
| Revaluation of pension scheme | -536 | -536 | 0 | -536 | |||
| Transactions with shareholders | |||||||
| Transactions w ith minority | -1,686 | -1,686 | -292 | -1,978 | |||
| Dividend | -57,010 | -57,010 | -677 | -57,687 | |||
| CLOSING EQUITY 2023-12-31 | 2,850 | 43,231 | -12,551 | 260,940 | 294,470 | 352 | 294,822 |
| 2022 | |||||||
| Retained | |||||||
| earnings | |||||||
| Other | including net | ||||||
| Amounts in SEK thousand | Share capital | contributed capital |
Reserves | profit for the period |
Total | Minority Interest |
Total equity |
| OPENING EQUITY 2022-01-01 | 2,850 | 43,231 | -6,432 | 238,609 | 278,258 | 0 | 278,258 |
| Net profit for the period | 101,000 | 101,000 | 0 | 101,000 | |||
| Other total profit | |||||||
| Translation differences during the period | 12,743 | 12,743 | 0 | 12,743 | |||
| Revaluation pension scheme | -1,772 | -1,772 | 0 | -1,772 | |||
| Transactions with shareholders | |||||||
| Dividend | -57,010 | -57,010 | 0 | -57,010 | |||
| CLOSING EQUITY 2022-12-31 | 2,850 | 43,231 | 6,311 | 280,827 | 333,219 | 0 | 333,219 |
Consolidated Cash Flow Statement
| October - December | January - December | |||||
|---|---|---|---|---|---|---|
| Amounts in SEK thousand | 2023 | 2022 | 2023 | 2022 | ||
| Operating activities | ||||||
| Operating profit | 9 197 | 14 301 | 62 997 | 136 415 | ||
| Adjustment for items not included in cash flow | ||||||
| Depreciation, amortisation and impairment charges | 7 618 | 6 876 | 31 195 | 29 921 | ||
| Other non cash generated items | -2 446 | -3 256 | -7 006 | -4 305 | ||
| 14 369 | 17 929 | 87 186 | 161 331 | |||
| Interest income | 1 696 | 160 | 2 325 | 745 | ||
| Interest expense | -1 776 | -694 | -6 288 | -2 210 | ||
| Paid taxes | -5 100 | -19 180 | -23 209 | -32 853 | ||
| Cash flow from operating activities before changes in | ||||||
| working capital | 9 189 | -1 785 | 60 014 | 127 013 | ||
| Cash flow from changes in working capital | ||||||
| Inventories | 3 537 | -5 544 | 31 694 | -55 423 | ||
| Trade receivables | 7 659 | 26 584 | -18 441 | 22 731 | ||
| Other short-term receivables | 7 722 | 9 243 | -4 248 | -7 475 | ||
| Trade payables | 4 860 | -18 837 | 25 368 | -39 246 | ||
| Other liabilities | 327 | -9 136 | -5 273 | -2 970 | ||
| Cash flow from operating activities | 33 294 | 524 | 89 114 | 44 630 | ||
| Investment activities | ||||||
| Acquisition of tangible non-current assets | -4 384 | -1 784 | -12 113 | -6 076 | ||
| Acquisition of intangible non-current assets | -1 217 | -2 629 | -7 050 | -10 572 | ||
| Change in long-term receivable | 0 | 6 290 | 0 | 6 290 | ||
| Sales of fixed assets | 0 | 0 | 0 | 1 079 | ||
| Change in long-term receivable | 1 520 | 2 252 | 1 421 | 909 | ||
| Cash flow from investment activities | -4 081 | 4 129 | -17 742 | -8 370 | ||
| Financing activities | ||||||
| Repayment/raising loans | -18 329 | 3 725 | 14 314 | 34 782 | ||
| Amortization of lease liabilities | -4 707 | -4 054 | -19 557 | -18 860 | ||
| Paid dividend | 0 | 0 | -57 692 | -57 010 | ||
| Cash flow from financing activities | -23 036 | -329 | -62 935 | -41 088 | ||
| Cash flow for the year | 6 177 | 4 324 | 8 437 | -4 828 | ||
| Cash and cash equivalents at beginning of period | 108 644 | 115 395 | 113 085 | 116 367 | ||
| Translation difference in cash and cash equivalents | -10 102 | -6 634 | -16 803 | 1 547 | ||
| Cash and cash equivalents at end of period | 104 719 | 113 086 | 104 719 | 113 086 |
Summary Financial Reports – Parent Company
Parent Company Income Statement
| 3 months October - December |
12 months | |||
|---|---|---|---|---|
| Amounts in SEK thousand | January - December | |||
| 2023 | 2022 | 2023 | 2022 | |
| Net revenue | 9,957 | 10,188 | 35,594 | 32,845 |
| Other operating income | 0 | 27 | 0 | 88 |
| Total revenue | 9,957 | 10,215 | 35,594 | 32,933 |
| Other external costs | -4,168 | -3,928 | -13,416 | -12,358 |
| Personnel costs | -5,560 | -7,407 | -22,907 | -23,268 |
| Depreciation, amortisation and impairment charges | -993 | -806 | -3,759 | -3,535 |
| Operating profit | -764 | -1,925 | -4,488 | -6,227 |
| Net finance items | 1,050 | 1,068 | 30,903 | 56,258 |
| Profit after finance items | 286 | -857 | 26,415 | 50,031 |
| Year-end appropriations | 8,118 | 9,815 | 8,118 | 9,815 |
| Taxes | -741 | -1,219 | -1,352 | -1,355 |
| Net profit for the period | 7,663 | 7,739 | 33,181 | 58,491 |
Since there are no comprehensive profit items, comprehensive income coincides with the period's results.
Parent Company Balance Sheet
| Amounts in SEK thousand | 2023-12 | 2022-12 |
|---|---|---|
| Assets | ||
| Intangible non-current assets | 34,482 | 26,287 |
| Tangible non-current assets | 1,253 | 617 |
| Financial non-current assets | 130,926 | 134,914 |
| Short-term receivables | 124,985 | 132,151 |
| Total assets | 291,646 | 293,969 |
| Equity and liabilities | ||
| Equity | 158,994 | 182,823 |
| Untaxed reserves | 14,353 | 16,370 |
| Current liabilities | 118,299 | 94,776 |
| Total equity and liabilities | 291,646 | 293,969 |
Notes
1. Accounting Policies
The consolidated financial statements, similar to those for 2022, have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Financial Reporting Board's recommendation no. 1 (RFR 1). The parent company, similar to the annual report for 2022, prepares its financial statements in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation no. 2 (RFR 2). The interim report has been prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16A are provided not only in the financial statements and their accompanying notes but also in other parts of the interim report.
Since January 1, 2019, Nilörngruppen has applied IFRS 16 Leases. The Group has applied the simplified transition method and has therefore not restated comparative figures. The simplification rule, that the right-of-use asset should equal the lease liability, has been applied upon transition. No transition effect is reported in equity. An adjustment regarding the presentation of the cash flow of IFRS 16 has been made for the financial year and the comparison year, which affected the cash flow from operating activities and the cash flow from investing activities by the corresponding amount. Complete leasing accounting principles are found in the 2022 Annual Report. See also Note 2 for the impact of IFRS 16 on the quarter.
The parent company has chosen to apply the exemptions in RFR 2, which means that all lease agreements will continue to be recognized as operating leases.
New accounting principles for 2023
No new accounting principles that have materially affected Nilörn have come into effect for the year 2023
2. IFRS 16 Leasing
| Of which effect | 31 Dec 2023 not incl. | ||
|---|---|---|---|
| Report of financial position | 31-Dec-23 | of IFRS 16 | effect of IFRS 16 |
| Other non-current assets | 120,495 | 24,451 | 96,044 |
| Other current assets | 32,470 | -1,533 | 34,003 |
| Equity | 294,822 | -717 | 295,539 |
| Long-term interest-bearing liabilities | 31,014 | 8,706 | 22,308 |
| Short-term interest-bearing liabilities | 80,478 | 14,929 | 65,549 |
| Total effect on equity | 22,918 | ||
| Jan-Dec 2023 | Of which effect of IFRS 16 |
Jan-Dec 2023 not incl. effect of IFRS 16 |
|
| Report of effects on profit | |||
| Other external cost | -80,393 | 19,557 | -99,950 |
| Depreciation, amortisation and impairment | -31,195 | -18,233 | -12,962 |
| Net finance items | -10,433 | -794 | -9,639 |
| Taxes | -13,176 | -105 | -13,071 |
| Total | -135,197 | 425 | -135,622 |
| Of which effect | Jan-Dec 2023 not incl. | ||
| Key financial indicators | Jan-Dec 2023 | of IFRS 16 | effect of IFRS 16 |
| Operating margin | 7.2% | 0.2% | 7.1% |
| Net cash and cash equivalents (liabilities −), MSEK | -6.8 | -23.6 | 16.9 |
| Equity ratio, % | 51.0% | -2.1% | 53.1% |
3. Information by Geographic Area
| Primary Segment - geographic areas | |||||
|---|---|---|---|---|---|
| Period October - December 2023 | |||||
| Sweden | Other Europe | Asia | Intra Group | Total | |
| Revenue | |||||
| External revenue | 11,035 | 77,320 | 115,300 | 0 | 203,655 |
| Total revenue | 11,035 | 77,320 | 115,300 | 0 | 203,655 |
| Profit | |||||
| Operating profit | -316 | -5,030 | 14,720 | -177 | 9,197 |
| Interest income | 1,696 | 1,696 | |||
| Interest expense | -3,686 | -3,686 | |||
| Taxes on the on the period's profit | -1,482 | -1,482 | |||
| Net profit for the period | -316 | -5,030 | 14,720 | -3,649 | 5,725 |
| Period October - December 2022 | |||||
| Sweden | Other Europe | Asia | Intra Group | Total | |
| Revenue | |||||
| External revenue | 14,586 | 74,951 | 109,774 | 0 | 199,311 |
| Total revenue | 14,586 | 74,951 | 109,774 | 0 | 199,311 |
| Profit | |||||
| Operating profit | 516 | 7,068 | 7,191 | -474 | 14,300 |
| Interest income | 160 | 160 | |||
| Interest expense | -2,178 | -2,178 | |||
| Taxes on the profit for the year | -3,178 | -3,177 | |||
| Net profit for the year | 516 | 7,068 | 7,191 | -5,670 | 9,105 |
| Period January-December 2023 | |||||
| Sweden | Other Europe | Asia | Intra Group | Total | |
| Revenue | |||||
| External revenue | 42,534 | 356,764 | 470,471 | 0 | 869,769 |
| Total revenue | 42,534 | 356,764 | 470,471 | 0 | 869,769 |
| Profit | |||||
| Operating profit | 6,086 | 23,824 | 35,249 | -2,162 | 62,997 |
| Interest income | 2,325 | 2,325 | |||
| Interest expense | -12,758 | -12,758 | |||
| Taxes on the on the period's profit | -13,176 | -13,176 | |||
| Net profit for the period | 6,086 | 23,824 | 35,249 | -25,771 | 39,388 |
| Period January-December 2022 | |||||
| Revenue | Sweden | Other Europe | Asia | Intra Group | Total |
| External revenue | 52,361 | 327,891 | 562,559 | 0 | 942,811 |
| Total revenue | 52,361 | 327,891 | 562,559 | 0 | 942,811 |
| Profit | |||||
| Operating profit | 13,601 | 51,955 | 72,937 | -2,080 | 136,414 |
| Interest income | 745 | 745 | |||
| Interest expense | -4,743 | -4,743 | |||
| Taxes on the profit for the year | -31,417 | -31,416 | |||
| Net profit for the year | 13,601 | 51,955 | 72,937 | -37,495 | 101,000 |
4. Definitions of alternative key financial indicators
ESMA (The European Securities and Markets Authority) has published guidelines for alternative key financial indicators for companies with securities listed on a regulated market within EU. These guidelines shall be applied to alternative key financial indicators used starting 3 October 2016. Reference is made in the annual accounts to a number of non–IFRS performance metrics used to help investors as well as management to analyse the company's operations. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. Since all companies do not calculate financial metrics in the same way, they are not always comparable with metrics used by other companies. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. We describe below the various non–IFRS performance metrics used as a complement to the financial information reported in accordance with IFRS and how these metrics have been used.
| Non IFRS-metric |
Definition | Calculation | Justification |
|---|---|---|---|
| Average Equity | Equity at the beginning of the period, plus equity at the end of the period, divided by two |
(294 825 + 333 219) / 2 | The metric is the difference between the Group's assets and liabilities, which is equivalent to consolidated equity contributed by owners and the consolidated aggregated profit. This metric is used to report the capital at tributable to the Group's owners. |
| Average Number of Employees | Average number of yearly em ployed |
This metric is used to measure the development of the Group's work force. |
|
| Revenue Growth | Net revenue at the end of the period, minus net revenue at the beginning of the period, di vided by net revenue at the beginning of the period. |
(869 769 – 942 811) / 942 811 |
This metric is used to analyse profit ability over time, given the resources attributable to the Parent Company's owners. |
| Return on Equity | Period's result according to the income statement in percent of average equity. |
39 388 / 286 791 | This metric is used to analyse profit ability over time, given the resources attributable to the Parent Company's owners. |
| Interest–bearing net cash and cash equivalents/liabilities |
Interest–bearing receivables, cash and cash equivalents, re duced by interest–bearing liabilities. |
104 719 – 80 478 – 31 014 |
The metric shows the total debt fi nancing and is used as a complement to judge the feasibility of paying dividends, to implement stra tegic investments and to gauge the Group's ability to meet its financial obligations. |
| Operating Margin | Operating result in percent of net revenue. |
62 997 / 869 769 | This metric is used to measure oper ative profitability. |
| Equity Ration | Equity in percent of balance sheet total. |
295 322 / 578 346 | This measure shows the proportion of the company's total assets fi nanced with equity by its shareholders. A high equity ratio is an indication of financial strength. |
| Profit Margin | Result before tax in percent of net revenue. |
52 564 / 869 769 | This metric makes is possible to measure the profitability no matter tax rate |
Definitions of key financial indicators not defined by IFRS
Nilörngruppen in Brief
Nilörngruppen is a global company founded in the 1970s, with expertise in adding value to trademarks through branding in the form of labels, packaging and accessories, primarily for customers in the fashion and apparel industry. Nilörngruppen offers complete, creative and customised concepts in branding, design, product development and logistic solutions. The Group conducts business via its own subsidiaries in Sweden, Denmark, Great Britain, Germany, Belgium, Portugal, Hong Kong, India, Turkey, China, Bangladesh, Italy and Pakistan, Switzerland, Vietnam and USA.